Back in 2015, Texas legalized the use of hemp-derived CBD products, and now it is legal to sell CBD in Texas, but of course, you would need a proper license for that. Cannabidiol, popularly known as CBD, is a natural compound that is derived from hemp plants.
The legal hemp market in the US has seen increasing growth. It went up from $688 million to $1.8 billion in a small timeframe from 2016 to 2020. The CBD products that are derived from hemp have also grown by 53%.
Potentially, there are a lot of health benefits of CBD, especially linked to improving sleep and relieving pain and anxiety. But how to open a CBD dispensary in Texas? There are a few things you Have to keep in mind before starting a CBD business.
CBD Laws and Regulations in Texas?
The Schedule I substance list is controlled by the Department of Health in Texas, and they removed cannabis from that list in the year 2019. However, this was done after the federal Farming Bill was implemented in 2018. It removed cannabis from the list of controlled substances.
House Bill 1325 was passed in 2019, which came with a set of regulations for producing hemp through cultivation and testing. However, this bill was passed to go with the rules of federal law in regard to CBD products.
However, Texas now has its own cannabis law and has made CBD legal in the state. They cannot grow their products, possess them, and sell them as well. However, there is a condition: the THC content in the product has to be less than 0.3%.
And this makes it a good business opportunity for people who want to start a CBD business. Moreover, there is no fear of penalties, and this has opened a lot of opportunities with regard to the cannabis industry.
How to Open a CBD Dispensary in Texas?
Texas is lenient about its CBD regulations, and this creates an amazing opportunity for starting a CBD business here. However, the regulations vary depending on the location where you are planning to open your business.
In general, if you are thinking about how to open a CBD dispensary in Texas, the basic thing that you are going to require is valid registration and a license from the Department of Agriculture in Texas to start selling CBD in the state.
Moreover, you have to abide by the stringent labeling requirements of Texas. It includes the need for ingredient listing, labeling requirements, advice to use, and the potential risks that come along with the consumption of these products.
State Health Service’s Regulations for CBD
The Texas Department of State Health Services (DSHS) is in charge of controlling all the manufacturers. Along with the resellers and distributors of cosmetics, food, and medical products made of CBD, which is derived from hemp.
To have a CBD business in the state, you need to have a good knowledge of the local jurisdiction. You have to know that the local jurisdiction regulates CBD product sales but does not prohibit these products from being sold.
However, the Department of State Health Services does not control the private possession of cosmetic products, dietary supplements, and food. House Bill 1325 has assigned a few roles under the bill that states:
- They have to initiate a licensing program for the CBD products that can be consumed.
- To create a restriction program for retailers who sell other CBD products.
- They also have to work towards testing the CBD products that are ready to sell.
Business Licensing
There is an online platform that the Department of State Health Services provides for dropping an application for license and registration for the distributors and retailers of CBD products.
Tere is a category for business and professional licenses where you have to submit the application for getting a license. There are a few other documents that you have to submit while dropping the application for a license.
Hemp License or Permit Application
The license or hemp permit lets the individual or business entity start a CBD business in Texas. So, if you ask how to open a CBD dispensary in Texas, then the simple answer is to get a hemp license.
This license gives you the authority to handle the products that have CBD in them.
- Initially, to submit the application, the applicant needs to submit all the details of the facility where the help-related products are produced and handled.
- There are various types of licenses. Some just allow the applicant to grow help in a particular area of Texas and grow a particular variety of hemp.
- The fees that you need to pay are also different depending on the facility, the lot permit, and the type of license.
- There is a different license for planting more than one variety in a single facility and a single variety in various different facilities.
- Every hemp production facility has a different registration process, and every hemp lot permit is different.
It is challenging and takes a lot of hard work to be successful in any industry, and that depends on different factors. To run a CBD business from the ground level, you need to do a lot of planning. You have to go through a lot of regulatory stuff to bring out the full product form.
Well, to start with, there are a lot of risks involved with this business, just as there are in any other kind of business. You cannot just run a CBD business to earn money. The business should be beneficial to the consumers.
It should produce a well-informed CBD community, with growth in the market as well as the consumers.
Advertising Laws
Because there is an amalgamation of clear federal laws and unclear state laws, the laws about advertising CBD products in Texas are really confusing. Federally, any marijuana-based substances are not legal, so if you think about advertising it over radio channels and the internet, then that might be a little difficult or impossible, for that matter.
However, some legal experts would say that you can still do it with extreme caution if it is absolutely necessary to advertise. But to be on the safe side, it is better not to advertise at all.
What Are the Different Kinds of CBD Products That You Can Sell in Texas?
As per DSHS, any consumable product is defined as a product that is processed for consumption which contains hemp, including cosmetics, drugs, devices, or food. And it does not include any product that has hemp seeds or ingredients that are derived from hemp seeds.
With that, the common consumable products in Texas are:
- Lotions and other cosmetics that contain CBD
- Drinks or food that had CBD infused with it
- Over-the-counter drugs that contain CBD
How Much Does It Cost to Open a CBD Dispensary in Texas?
There is no consistent formula for stating a CBD dispensary in Texas. It mainly depends on the size, model, and business type. It can cost from a few hundred dollars and can go up to a few thousand dollars.
You have to consider costs like:
- Permits and license
- Rental costs
- Product labeling and testing
- Labor
- Software
- Credit card processing
- Marketing expenses
Ending Note
How to open a CBD dispensary in Texas? Well, by now, the process that you have to go through is clear. This is a lucrative venture but needs a lot of preparation and planning.
You have to research the products, make a business plan, secure the cost, and have to keep a check on the associated cost. These are the things that you have to keep in mind if you want to have a successful CBD dispensary.
But make sure that you are keeping up with the changing rules and regulations that come in the CBD industry very often. However, the CBD business in Texas can secure their payment process through any merchant service provider who has enough knowledge about the CBD business.
